Valuations – S&P 500 12-Month Fwd P/E Multiple – Top 5 Largest Stocks vs. Other 495 Stocks After nearly a decade of commanding sky-high multiples, the five largest U.S. stocks have lost their valuation premium, with average P/Es barely above the rest of the S&P 500. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Forward P/E Multiple Since October 2025, the S&P 500’s forward P/E has eased from 23 to 21, largely on the back of stronger forward earnings estimates. Valuations look less stretched than they did in the fall, but that does not make equities cheap. Image: Goldman Sachs Global Investment Research
Valuations – 12-Month Forward P/E Multiple – MSCI Regions, STOXX 600 and S&P 500 Markets may have pulled back, but valuations are still elevated worldwide. Strong earnings are doing the work, and as long as that continues, multiples are unlikely to crack. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Forward P/E Multiple Strong profits haven’t lifted valuations: the S&P 500’s P/E has narrowed as investors weigh geopolitical uncertainty and renewed oil price volatility. Sometimes solid results aren’t enough when risk appetite fades. Image: Goldman Sachs Global Investment Research
Valuations – 12-Month Fwd P/E Multiple. Worldscope Europe Sector Indices If you look at today’s valuation at 16.8x P/E and consensus revenues growth at around 9% annually, the risk of a slowdown in Software & IT Services is at least partly priced in already. Image: Goldman Sachs Global Investment Research
S&P 500 Valuation Multiples With valuations lofty and expectations running high, U.S. stocks look exposed if earnings or the economy disappoint. Image: Real Investment Advice
Scatter Plot Returns of P/E Multiples and S&P 500 1-Year Returns The weak link between the P/E ratio and the S&P 500’s one-year performance shows why investors are better off keeping their eyes on the long game, not short-term valuations. Image: Carson Investment Research
Valuation – Equal-Weight S&P 500 P/E Multiple According to Goldman Sachs, the equal-weight S&P 500 P/E multiple is currently 13% above fair value. This suggests that stocks in the S&P 500 Equal Weight Index may be relatively more expensive compared to their earnings potential. Image: Goldman Sachs Global Investment Research
S&P 500 Valuation Matrix (12-Month Forward EPS and P/E Multiple) According to Morgan Stanley, U.S. equity market gains in 2024 may stall due to high forward multiples and ambitious earnings forecasts for the next 12 months. Image: Morgan Stanley Wealth Management
FY2 P/E Multiple of S&P 500 Top and Bottom Valuation Quintiles The valuation gap between high and low valuation U.S. stocks remains elevated, presenting potential opportunities for value investors. Image: Goldman Sachs Global Investment Research
U.S. Labor Market – Multiple Jobholders, Primary and Secondary Jobs Full Time More Americans are taking on second jobs as the cost of living increases. Image: The Daily Shot